Legal Industry is a relative newcomer to Robotic Process Automation (RPA), Machine Learning (ML) & AI.
Legal industries existed in solo mode until 2010. Today, it has one of the tumultuous environment with a huge potential for transformation. It has big challenges with the new and innovative business models, different modes of service delivery, M&A and pitting against technologies that enable transformation which will have a long-lasting impact.
Robotic process automation is the use of technology to enable computer software commonly called robots or bots to perform routine tasks. RPA isn't about merely automating processes, but rather about creating virtual workers that can deliver highly repetitive, time-consuming, rule-based tasks.
There are five specific areas where Legal Industry will benefit from RPA.
- Being Competitive by reducing Cost to Serve, i.e. Legal Cost
Manual errors and inconsistencies can be removed by automating routine tasks with RPA. Administrative labour costs are also reduced, freeing up your people to focus on other value-add areas, such as delivering better customer service on the frontline.
Mistakes can be expensive to fix. Given that RPA software can complete tasks more efficiently and effectively than humans, it can help you safeguard your business against unwanted downtime and reduce the risk of human error.
RPA is not only useful in reducing human errors but it works 24x7 (with no sleep!) hence no downtime. If it works 24 hours a day, then it works three times more and yet at least ten times faster than humans.
- Fixed Recoverable Cost
The risk of taking on new clients and lowering the cost of civil cases by effectively managing within the FRC guidelines can be reduced considerably by implementing RPA.
The opportunity-cost of committing and be determined by the Bot. It records numerical parameters for the case and gives an estimated number of hours to complete the trial. These hours will be registered against the case calendars.
Assessing the opportunity cost will help to determine whether the case is profitable within the FRC, whether it can be placed under the fast track or intermediate track for knowing the value of the FRC.
- RPA’s use in assessing Financial Risk of a law firm
According to Mckinsey 56% of financial planning & analysis and 20% of risk management activities can be either highly or fully automated. Another survey by Deloitte highlighted regulatory/compliance risk as the emerging top three risk types for the coming years.
ARisk assessment done by robots is an example of risk monitoring that has no human intervention. RPA is very good at sorting and retrieving data, and it can retrieve old case cost data, client's credit rating, accounts payable data, analyse and meaningfully report on it.
- This saves 100's of hours of bookkeepers and legal aids time.
- Senior Law professionals will have more time to assess the risk at the client and transactional level.
- Reduce non-billable time
RPA in the legal sector enables to release high-value staff Lawyers & Associates from mundane task of handling paperwork, timesheets etc. and concentrate on tasks that matter more to the customer and reduce non-billable time. Law staff assisted by bots can focus on vital elements of the case, thus improving customer service and accuracy on areas such as contract law, e-discovery, due diligence and contracts management.
- Compliance Check
Sanctions and fine under the Money Laundering scheme are quite common in the Legal industry. The risk of Oversight is very high, and unwittingly a legal firm may be subjected to huge fines.
Software robots can automatically perform periodic due-diligence checks and flag suspicious activity with 24-hour vigilance and 100% accuracy. RPA's software robots can fill out the Suspicious Activity Report (SAR) and ping it when done.
If you are not already investing in a virtual workforce and taking advantage of the enormous potential RPA offers in terms of efficiency, accuracy and improved customer experience, there is one thing you can be sure of: your competitors are.
In the next article, I will cover when and how you start your Automation journey.
For any queries, please contact Raji at firstname.lastname@example.org RPA & Operational Efficiency Consultant.